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According to data from the Ukrainian embassy in the country, Mexico is the second most important trade partner of Ukraine among the countries of Latin America and the Caribbean.
Bimbo maintains a presence in Ukraine with the East Balt Bakeries brand, a company dedicated to supplying buns to restaurants and other places where food is served.
Gruma that operates in the Ukrainian market through Azteca Altera Milling, which emerged after the acquisition of Altera, the main producer and marketer of corn grains in Ukraine.
The escalation of the war conflict that this February 24 went up another step with the invasion of Russian troops in Ukraine, has caused many sectors in the world to move to respond to the implications that this would represent, in economic, industrial, human rights humans, among others. In industrial terms, already many Mexican companies that go beyond having factories and employees in Ukraine, such as Bimbo and Gruma, have reported what measures they will take.
According to data from the Ukrainian government portal, this country is in ranked 85th in the Global Competitiveness Index, among some 140 countries, in 2019.
Despite being a country where its economy is very weak compared to the rest of the world, many important companies in the mass consumption industry, the financial sector and the automotive industry have factories and headquarters in Ukraine.
Specific, according to data from the Ukrainian embassy in the country, Mexico it is the second most important trade partner of Ukraine among the countries of Latin America and the Caribbean. This importance in the commercial sphere is clearly evidenced by the fact that, in the last seven years, Mexico has ranked second after the United States in the Western Hemisphere in terms of Ukraine’s exports.
In this sense, the report of the embassy of the European country adds that in 2020, merchandise trade between Ukraine and Mexico amounted to 291.3 million dollars (Ukrainian exports – $69.5 million; Mexican imports – $221.8 million).
What will happen to Mexican companies in Ukraine?
In the Ukrainian market there are two famous Mexican companies such as Bimbo and Gruma who have made investments in the agri-food sector of the Ukrainian economy, and maintain factories and employees in the European country.
Bimbo maintains a presence in Ukraine with the East Balt Bakeries brand, company dedicated to providing buns to restaurants and other places where food is served.
In recent statements by Diego Gaxiola, Director of Administration and Finance of Grupo Bimbo, it was possible to cKnowing that this conflict will raise the price of raw materials for food production in the world, mainly wheat.
“(The conflict) is an additional risk, particularly for wheat. As part of our strategy, we ended 2021 with approximately 70 percent (of coverage) in our needs for raw materials for the entire year; This does not mean that we will not see any impact because we will begin to face additional inflation at the end of the year and in 2023, ”he commented at a conference.
To date, Bimbo has not reported what will happen to its companies in the European country, after the invasion of Russia. In 2021, the Europe, Asia and Africa region represented 9.8 percent of Bimbo’s revenues.
Other Mexican companies that have not reported their current operations in the European country despite having a strong presence, They are Gruma, which operates in the Ukrainian market through Azteca Altera Milling, which emerged after the acquisition of Altera, the main producer and marketer of corn grains in Ukraine. And Orbia, formerly known as Mexichem, is a polymer producer.
Other international companies with a presence in Ukraine
For its part, Nestlé reported this Thursday that it temporarily closed its factories, warehouses and supply chain in Ukraine after the Russian invasion.
Through a statement, the brand pointed out that “ensuring the safety and protection of our workers is our number one priority. For this reason, we have temporarily closed our factories, warehouses and supply chain in Ukraine; and we have recommended our workers to stay home.”
The Swiss company has three factories and about 5,000 workers in Ukraine, It added in its statement that it has contingency plans to ensure that it can resume the supply of products, as soon as security conditions allow.
While a bottling company Coca-Cola also closed its plant in this country and asked the country’s staff to stay home.
“We will keep this under review in the coming days,” a company spokesman said.
In addition, Carlsberg, the second largest brewery in Ukraine, halted operations at two breweries in Kiev and the southern city of Zaporizhzhya.
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